Ayala Land Inc. is infusing another P23 billion worth of assets into its real estate investment trust AREIT Inc.
This follows the announcement by AREIT of acquiring industrial land from sister company ACEN Corp., worth P6.77 billion.
The asset infusion will cover Makati flagship assets – Ayala Triangle Gardens Tower 2, luxury mall Greenbelt 3 and 5 and Holiday Inn and Suites Makati in Ayala Center, as well as Seda Ayala Center Cebu.
In exchange, Ayala Land and units Greenhaven Property Ventures Inc. and Cebu Insular Hotel Co. Inc. will receive 642.15 million AREIT shares at P34 apiece for the Makati and Cebu property.
“The transaction will be subject to the approval of AREIT shareholders in their special stockholders meeting in February 2024 and pertinent regulatory bodies thereafter,” AREIT said.
In addition to the asset-share swap, AREIT said it will also acquire Seda Lio in El Nido, Palawan, sister firm Econorth Resort Ventures Inc. for P1.19 billion.
“The acquisition is expected to immediately contribute to AREIT’s income within the first quarter of 2024,” it said.
“The acquisition of prime commercial properties along with industrial land is aligned with AREIT’s objectives to significantly expand and diversify its portfolio to capitalize on various growth opportunities across real estate sectors. Furthermore, the land acquisition will provide AREIT shareholders with the potential for long-term capital appreciation while earning guaranteed lease income on the property,” AREIT said in a statement.
Carol Mills, AREIT chief executive officer, said the company is laying the groundwork to accelerate AREIT’s expansion.
“With Ayala Land’s deep pipeline of commercial assets as well as other strategic properties in the Ayala Group, AREIT can have the capacity to grow immensely and attain a market presence at par with some of the REIT players in the region. We deliberately planned the acquisitions to have a healthy mix of malls, offices, hotels, and industrial properties, which broadens our portfolio and mitigates concentration risk to a particular sector,” Mills said.
She said AREIT will execute the deed of exchange for all the properties it plans to acquire and apply for its approval with the SEC by March 2024.
“The new shares will be issued, and the income from the assets shall accrue to AREIT upon approval. As in previous asset infusions, AREIT will remain compliant with the minimum public float requirement as the sponsor will effect a block placement of its shares on or before the expected SEC approval within the second quarter of next year,” Mills said.
